The industry’s combined ratio improved slightly, dropping to 96.3% in Q1 from 96.6% one year earlier. The quarter produced fewer catastrophe losses this year, however, accounting for an estimated 3.3 points compared to 8.7 points in Q1 2021.
The industry also saw a 39.7% decline in policyholder dividends and 10.5% growth in net earned premiums, according to the report. Increases in incurred losses, loss adjustment expenses and underwriting expenses offset the premium gains, tempering the industry’s increase in underwriting income.
Overall P/C industry net income rose 46% to $29.0 billion for the first quarter of 2022, Best said. Industry surplus increased slightly by 0.5% from year-end 2021 to $1.0 trillion.
Best uses financial statements for insurers writing 95% of total industry premiums in the U.S. to compile the report.